Coca-Cola to launch a cane-sugar version of its classic cola in the U.S. this fall.

Coca-Cola announced on Tuesday its plan to introduce a cane-sugar variant of its iconic cola beverage in the United States this upcoming fall. This decision follows a recent social media post from President Donald Trump, who had indicated that the beverage giant would transition from high-fructose corn syrup to real cane sugar for its flagship product.

While Coca-Cola did not immediately confirm the shift after Trump’s announcement, the company assured consumers that new offerings would soon be available. This move is part of Coca-Cola’s broader strategy to diversify its product range in response to evolving consumer preferences. Coca-Cola’s Chairman and CEO, James Quincey, emphasized the company’s commitment to providing “differentiated experiences” for its customers.

In recent years, the demand for beverages made with natural ingredients has increased, compelling the firm to explore innovative product lines. Notably, Coca-Cola has already been selling “Mexican Coke,” known for its sugar cane formulation, within the U.S. market, which serves as a reference point for this new variation.

The announcement comes in light of Coca-Cola’s recent financial performance. The company reported second-quarter earnings that surpassed expectations, with price increases helping to counteract softer sales volumes. During this period, global case volumes showed a decline of 1%, reflecting challenges particularly in Latin American markets. Despite this dip, Coca-Cola Zero Sugar saw a remarkable 14% increase in volume, underscoring a shift in consumer preferences towards lower-sugar options.

Traditional Coca-Cola remains dominant in sales compared to its zero-sugar counterparts; however, the rapid growth in demand for low-sugar varieties indicates changing consumer habits in the beverage sector. In contrast, Coca-Cola’s offerings in juice, dairy, and plant-based drinks experienced a 4% decline in case volumes, while the sports drinks segment saw a 3% decrease, highlighting a mixed performance across its product categories.

Coca-Cola’s revenue for the latest quarter rose 1% to .5 billion, aligning with analyst forecasts. Adjusted net income surged by 58% to .8 billion, with earnings per share reaching 87 cents, outpacing estimates from financial analysts. Looking ahead, the company has revised its expectations for full-year adjusted earnings growth to 8%, a revision from its earlier estimate range of 7% to 9%.

As of Tuesday morning, Coca-Cola shares experienced a slight decline, reflecting trends in the broader U.S. market. This latest initiative not only aligns with Coca-Cola’s operational goals but also responds to a consumer environment increasingly favoring natural ingredients and healthier options.

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